Pre-sale Guarantee Application Becomes Possible Before Demolition in Maintenance Projects

[Asia Economy Reporter Moon Jiwon] Housing and Urban Guarantee Corporation (HUG) announced on the 30th that it has improved the timing of application for pre-sale guarantees related to redevelopment projects to support the government's expansion of housing supply and to facilitate smooth project progress for housing construction businesses.

Since 2016, when there were concerns about oversupply of housing, HUG had operated under the policy that for redevelopment and other maintenance projects, applications for pre-sale guarantees could only be made after demolishing the existing buildings on the project site (main site), in accordance with the government's real estate measures.

However, due to the influence of subsequent government real estate policies, the housing supply stabilized at around 200,000 units, and the market environment changed.

Additionally, as housing associations and housing construction businesses voiced difficulties such as project delays and increased project costs, from this day forward, applications for pre-sale guarantees related to redevelopment, reconstruction, and other maintenance projects can be made even before the demolition of existing buildings.

Lee Jaegwang, President of HUG, explained, "Through this system improvement, the cost burden on housing construction businesses will be reduced, and housing supply is expected to be further activated. HUG will continue to improve the system to support the government's housing market stabilization policies and the smooth progress of housing projects."

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